REG - Harena Resources PLC - Mining Study Update

Harena ResourcesAnnouncement

06/05/2025 07:00

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RNS Number : 4351H  Harena Resources PLC  06 May 2025

 

6 May 2025

 

Harena Resources Plc

 

("Harena" or the "Company")

 

Ampasindava Mining Study Advancing to Unlock Strategic Supply of Magnet Metals

Harena (LSE:HREE) is pleased to report that Pre-Feasibility study work is
progressing at pace on its 75% owned Ampasindava Rare Earths Project in
Madagascar. Initial work on the mining plan is well advanced and will underpin
subsequent cost and logistics modelling ahead of the next phase of project
development.

The urgency of this work is reinforced by escalating geopolitical tensions and
export controls around critical rare earth elements ("REEs"). This has
sharpened international focus on securing independent supply specifically of
strategically important critical magnet metals Neodymium (Nd), Praseodymium
(Pr), Dysprosium (Dy) and Terbium (Tb).

This study work is the critical path item towards achieving the Company's goal
of developing an environmentally responsible, and geopolitically neutral
supply of magnet metals to feed the global defence, energy, and technology
sectors and forms the foundation for progressing a full Mining Licence
application under the 2023 Madagascar Mining Code - a key milestone toward
near-term development.

Highlights:

·    Mining Study underway following integration of extensive historical
geological and resource data.

·    Pre-Feasibility Study (PFS) on track for submission to the Mining
Cadastre Office ("BCMM") in Q3 2025.

·    Project Design Philosophy completed - focused on near-surface
high-grade zones, reagent efficiency, and low-impact processing.

·    Study incorporates all prior Exploration, Metallurgical and Mineral
Resource results compiled by SGS Canada, assessed against working plan for
open cut, heap leach processing operation.

·    Onsite environmental and social screening work to commence with
appointment of a Malagasy consultant.

·    Appointment of the Environmental Project Lead is planned for late May
2025

 

Joe Belladonna, Managing Director, commented:

"We are moving decisively to advance the Ampasindava project forward as
quickly as possible, especially given the current backdrop of geopolitical
tensions with regard to trade tariffs and tightening export controls around
heavy rare earth and NdFeB magnet materials.

Completing the initial prefeasibility study will bring us a step closer to
supplying an independent, near term source of magnet metals into international
markets - with a strong focus on technical viability, cost-efficiency, and
responsible development."

 

Commentary on Project Design Philosophy

The Pre-Feasibility study is progressing well and submission is planned for
submission to the Mining Cadastre Office (BCMM) during the third quarter 2025

The Project design philosophy is underpinned by the large, shallow and highly
accessible rare earth mineral deposit held in the upper regolith layer. The
first pillar of design is to mine high grade and high ore thickness areas
during the first 10 years of extraction.

Initial mining studies indicate the clays can be mined with minimal grade
dilution. In addition, the Resource indicates that large areas of higher grade
are discretely placed throughout the mining areas. These high-grade areas will
be the focus of initial mining in order to create improved technical and
financial leverage for the operation and reduce start-up risk.

Ore will be extracted from 4 or 5 satellite pits operating within the high
grade zones. Mining will be up-dip with excess water draining into sumps for
evaporation. This reducing the moisture in the clay and providing material
handling efficiencies.

The second pillar of design is to optimise the use of reagents and residence
time on the heaps to achieve optimum recovery rate of rare earth minerals in
the shortest, most cost effective, saline leach time. This approach will
result in installed production capacity being rightsized to extract the most
favourable economic zones of the ore body and recover REE minerals.

The third pillar of process design is to be achieved through further
metallurgical testing at an on-site demonstration plant to be constructed
following transition of the mining license. The higher value rare earth
minerals will be prioritised in preference to low value products

Environmental Approach

Madagascar lies within a diverse ecological and environmental setting. The
Company has no plans or intention to proceed with a strategy that may
compromise the environmental baseline.

The current plan is a system of cyclical, zero harm mining and concurrent
rehabilitation as commonly undertaken in the mineral sands industry. Clays
will be returned to the mining cavity on an ongoing basis and stored top-soil
will be replaced facilitating immediate natural rehabilitation or repurpose
for agriculture.

Leaching with a dedicated and ring-fenced heap leach farm will be conducted
with Ammonium Sulphate (fertiliser) lixiviants onto impermeable heap
foundations. The Company should not require any strong acids as part of the
primary mineral recovery system.

Logistics

Project logistics on the Madagascar mainland is complex as a result of an
underdeveloped road transport system. In order to reduce capital and operating
costs and improve efficiency, seaborne and airborne logistics will be
prioritised over land-based transport. The plant and equipment to be installed
is expected to consist of modular units.  It is planned that the majority of
the equipment will be transported in standard 20ft or 40ft containers. The
island of Nosy B hosts an international airport and is located just 35km from
the mine site, by sea.   The logistics study is a key element of the project
viability with the proximity to the ocean viewed as a significant benefit to
the project.

 

Contact

 Harena Resources                      www.harenaresources.com.au (https://harenaresources.com.au/)
 Joe Belladonna/Allan Mulligan         +44 (0)1624 681 250

                                       info@harenaresources.com.au (mailto:info@harenaresources.com.au)
 Tavira Financial                      +44 (0)20 7330 1833

 Jonathan Evans/Oliver Stansfield
 Flowcomms (Investor Relations)        +44 (0) 7891 677 441

 Sasha Sethi                           sasha@flowcomms.com (mailto:sasha@flowcomms.com)
 X (Twitter)                           www.x.com/HarenaResources (http://www.x.com/HarenaResources)
 LinkedIn                              www.linkedin.com/company/harenaresources
                                       (https://www.linkedin.com/company/harenaresources/)

 

 

 

Notes to Editors

 

Harena Resources is a rare earths exploration and development company focused
on the Ampasindava Ionic Clay Rare Earth Project in Madagascar (Harena's
interest is 75%). The project hosts one of the largest ionic clay rare earth
deposits outside of China, with significant concentrations of high-value
magnet metals. Harena is committed to low-impact, high-recovery mining,
providing a sustainable supply of critical minerals for the global energy
transition and military defence industries.

Forward-Looking Statements This announcement contains forward-looking
statements that involve risks and uncertainties. Actual results may differ
materially from those expressed or implied in such statements.

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